Wall Street Fine Tracker

Throughout the mutual fund investigations, many of the biggest fund families--
Vanguard
,
American
and
Fidelity
--have appeared untouchable.

When the trouble first bubbled up in September 2003, four companies--
Bank of America
,
Bank One
,
Strong
and
Janus
--were implicated. They were soon followed, very prominently, by
Alliance Capital
,
Marsh & McLennan
's
Putnam and the MFS unit of
SunLife
.

But with the June 29 settlement by Bank One, just days before its merger with
J.P. Morgan Chase
, the regulators have almost exhausted most of their initial inquiries.

On to the big guys. In late May,
Wellington Management
--which manages over $400 billion for institutional investors and fund groups like Vanguard--confirmed that the U.S. Securities and Exchange Commission was looking into its trading practices. Capital Research and Management, which manages over $450 billion for American Funds, has also attracted the attention of the SEC for directing brokerage commissions to top sellers of its funds, according to the New York Times.

While mutual fund legislation has hit a snag in Congress, the SEC continues to act under its own power. On June 23, the top U.S. securities watchdog adopted rules designed to increase disclosure of investment advisory contracts, regulate short sales and strengthen fund governance. The most controversial change requires the fund board to be composed of at least 75% independent directors and led by an independent chairman. This issue even prompted an editorial by Fidelity's Edward C. "Ned" Johnson, who chairs both the funds and the management company, against the proposal.

In addition to mutual funds, variable annuities sales, municipal bond trading and insurance brokerage fees are also the subject of ongoing regulatory scrutiny. At the midpoint of 2004, financial firms have put up almost $4.4 billion dollars in fines and restitution--that's more than all of 2003.

Our Wall Street fine tracker lists fines and settlements of $1 million or more handed down to financial services companies since Jan. 1, 2001. Most settlements come with a provision--the assessed institution will neither admit nor deny the allegations.

Date | Company | Amount

July 12 | Piper Jaffray | $2.4 million

Piper Jaffray
was fined $2.4 million and censured by NASD for allegations related to the allocation of initial public offerings from 1999 to 2001. In agreeing to the penalty, Piper Jaffray neither admitted nor denied the charges. NASD alleged that Piper Jaffray investment bankers developed a tiered system for awarding IPO shares to the executives of corporate clients. A "0" ranking, according to NASD, meant "no stock for you."

July 12 | Morgan Stanley | $54 million

In a settlement with the U.S. Equal Employment Opportunity Commission,
Morgan Stanley
agreed to pay $54 million to settle a three-year-old sex discrimination lawsuit filed "on behalf of a class of female officers and women eligible for officer promotion in the firm's Institutional Equity Division." Lead plaintiff
Allison
Schiefflin
Allison Schieffelin
received $12 million, while the company set aside $40 million for current and former female employees who believe they were the subject of discrimination. Though Morgan Stanley denies the allegations and any liability, the company will set aside $2 million to establish diversity programs designed for the compensation and promotion of female employees.

July 7 | Knight Trading | $79 million

Knight Trading
announced that it reached an agreement in principle with NASD and the U.S. Securities and Exchange Commission for $79 million. The agreements concerns trading and conduct at Knight Securities between 1999 and 2001. Though the administrative order has not yet been finalized, Knight expects that the company "would neither admit nor deny the findings" in the agreement. The agreement in principle requires Knight to disgorge $41 million in institutional trading profits and pay $13 million in interest and $25 million in penalties.

July 1 | Goldman Sachs | $2 million

Goldman Sachs Group
agreed to pay $2 million to settle an administrative proceeding with the SEC. According to the SEC, sales traders at Goldman violated the waiting period for marketing an IPO before a registration became effective. Additionally, the SEC alleged that a Goldman executive spoke to the media about an IPO by
PetroChina
before an initial registration was filed. In the settlement, Goldman neither admitted nor denied the findings.

June 29 | Bank One | $50 million

In a settlement with the U.S. Securities and Exchange Commission and the New York Attorney General's Office, Bank One Investment Advisors, BOIA, the unit of
Bank One
that oversees One Group funds, agreed to pay a $40 million penalty and $10 million disgorgement in an administrative proceeding related to trading of One Group funds. In a separate settlement with the New York AG, Bank One Investment Advisors agreed to reduce management fees by at least $8 million per year over the next five years. BOIA neither admitted nor denied the findings in the SEC's report.
Mark
Beeson
Mark Beeson
, the president and CEO of BOIA until October 2003, agreed to a $100,000 penalty and a three-year ban from the securities industry. One Group was one of four fund groups implicated in the ongoing mutual fund trading scandal revealed by New York Attorney General Eliot Spitzer in September 2003. Prior to its merger with
J.P. Morgan Chase
on July 1, Bank One was the last of the four to settle.

June 21 | Pilgrim Baxter | $90 million

In a settlement with the SEC and the New York Attorney General's Office,
Pilgrim Baxter & Associates
, a unit of London-based Old Mutual, agreed to pay $50 million in fines and $40 million in disgorgement in an administrative proceeding related to frequent trading in PBHG funds. In a separate settlement with the New York AG, Pilgrim Baxter agreed to reduce management fees by at least $10 million per year over the next five years. A district court suit against Gary Pilgrim and Harold Baxter, the ousted co-founders of the money management firm, is still pending. Pilgrim Baxter, the firm, neither admitted nor denied the findings but did consent to censure and a cease-and-desist order.

May 27 | Citigroup | $70 million

CitiFinancial, the consumer finance unit of
Citigroup
, agreed to a settlement with the Federal Reserve for $70 million related to allegations of improper lending practices in 2000 and 2001. The funds will be provided as restitution. Through a consent decree, CitiFinancial neither admitted nor denied the Federal Reserve Board's findings.

May 20 | Strong Capital Management | $80 million

To settle several allegations related to violation of fiduciary duties,
Strong Capital Management
agreed to pay $80 million in penalties and restitution in an agreement with the Securities and Exchange Commission, the Office of the New York Attorney General and the Wisconsin Department of Financial Institutions. Strong Capital was among the four firms alleged to have permitted discretionary trading in its mutual funds by
Canary Capital
(see "Eliot Spitzer Finds His Canary"). Additionally,
Richard
Strong
Richard Strong
, founder of
Strong Financial
, was barred from the securities industry and agreed to pay $60 million; two other Strong Capital executives agreed to penalties. Strong Capital will also reduce its management fees by at least $7 million per year over a period of five years.

May 18 | Bear Stearns; Deutsche Bank; Morgan Stanley | $15.6 million

The NASD imposed monetary sanctions on three investment banks for receiving "unusually high commission from certain customers...without inquiry and within one day of allocating 'hot' IPOs to those same customers," the regulator said in a press release. In combined disgorgement and penalties,
Bear Stearns
was ordered to pay $4.95 million; Morgan Stanley was ordered to pay $5.39 million; and Deutsche Bank Securities, a unit of
Deutsch Bank
was ordered to pay $5.29 million. In settling with NASD, the firms neither admitted nor denied the findings.

May 14 | Riggs National | $25 million

In separate settlements with the Office of the Comptroller of the Currency and the Financial Crimes Enforcement Network of the U.S. Department of Treasury, Riggs Bank, a unit of
Riggs National
, will pay a $25 million civil money penalty related to alleged violations of the Bank Secrecy Act and alleged failure to comply with an existing consent order. Riggs also entered into a cease and desist order with the Board of Governors of the Federal Reserve System. As a result of the settlement, Riggs is selling its Riggs International Banking unit. The OCC said Riggs failed to properly supervise the bank's relationships with foreign governments, including Saudi Arabia and Equatorial Guinea. Riggs Bank agreed to the penalty without admitting or denying any wrongdoing or relevant findings.

May 10 | Citigroup | $2.65 billion

To settle its part as a defendant in the WorldCom securities class action suit,
Citigroup
agreed to pay $2.65 billion, including plaintiffs' attorneys' fees, to settle a pending case in the U.S. District Court of the Southern District of New York. In the settlement papers, Citigroup "denies it committed any violation of law," according to a press release. Investors who purchased WorldCom bonds in May 2000 and May 2001 will receive $1.46 billion from Citigroup. Those who bought WorldCom common stock between April 29, 1999, and June 25, 2002, will receive $1.19 billion. The New York State Common Retirement Fund and New York State Comptroller Alan Hevesi represent the class as lead plaintiff.

May 10 | UBS | $100 million

In agreement with the U.S. Federal Reserve,
UBS
consented to a $100 million civil money penalty "in connection with U.S. dollar banknote transactions with counterparties in jurisdictions subject to sanctions under U.S. law, specifically Cuba, Libya, Iran and Yugoslavia," according to the Federal Reserve. In a press release, UBS said it "recognizes that very serious mistakes were made, accepts the sanctions and expresses its regret." According to UBS, the bank entered an agreement with the New York Fed to participate in its "Extended Custodial Inventory Program" for U.S. dollar banknotes, which blocks participation from countries under U.S. trade sanctions.

April 27 | Janus Capital Group | $101.2 million

Announcing an agreement in principal with the SEC, asset manager
Janus Capital Group
announced that it would provide $100 million to "compensate investors for the adverse effects of frequent trading and other mutual fund practices." In addition, Janus will make $1.2 million in payments to the state of Colorado. Working with the New York attorney general's office, Janus also agreed to reduce management fees by approximately $25 million per year over the next five years.

April 8 | Marsh & McLennan | $110 million

Completing a partial settlement from Nov. 13, 2003, Putnam Investments, a unit of
Marsh & McLennan
, reached monetary settlements with the SEC and Secretary of the Commonwealth of Massachusetts over allegations involving market timing in Putnam mutual funds. In both instances, Putnam will pay $5 million in disgorgement and $50 million in penalties for a total levy of $110 million. Additionally, Putnam has implemented initiatives to save shareholders an estimated $35 million in fees over the next several years.

March 31 | Sun Life Financial | $50 million

In a settled enforcement action with the SEC, the MFS unit of
Sun Life Financial
agreed to a $50 million penalty for allegedly failing to inform mutual fund investors and board members about monetary arrangements with brokerage firms to feature MFS funds. The civil money penalty will be distributed to MFS funds. According to the SEC, MFS negotiated strategic alliances with approximately 100 broker-dealers in return for directed brokerage commissions. MFS agreed to settle the matter, without admitting or denying the findings.

March 15 | Bank of America, FleetBoston | $515 million

In a joint settlement with the SEC and the New York attorney general's office,
Bank of America
agreed today to pay $250 million in investor restitution and $125 million in penalties for allegedly permitting rapid trading of certain mutual funds in its Nations Fund family. FleetBoston--now merged with Bank of America--settled similar trading complaints for $70 million in restitution and $70 million in penalties. Both settlements are agreements in principle and must be approved by the SEC. The companies consented to a cease and desist order without admitting or denying the findings. In a separate action, Bank of America/Fleet agreed to reduce mutual fund fees by $160 million over a five-year period.

March 11 | Ameritrade | $10 million

In a settlement with NASD,
Ameritrade
agreed to a $10 million fine related to alleged violations of Federal Reserve Regulation T, which requires customers in cash accounts (non-margin) to make full cash payments for each trade "without regard to unsettled proceeds of any securities sold." According to NASD, Ameritrade and units Datek and IClearing, acquired in September 2002, allowed this type of transaction to occur for over 2 million transactions in 30,000 cash accounts. "Specifically, the firms allowed customers to make purchase transactions based on proceeds from unsettled trades," the NASD said in a release. The firms neither admitted nor denied the allegations. There were no allegations of monetary harm to investors.

March 10 | Bank of America | $10 million

In a settlement with the SEC, the Bank of America Securities unit of
Bank of America
agreed to pay $10 million for allegedly failing to promptly produce documents related to a regulatory investigation. The SEC assessed the penalty while investigating whether traders at Bank of America Securities (formerly Montgomery Securities) acted on stock research before it was published by the firm. While the investigation is continuing, the alleged trades occurred between 1999 and 2001. Bank of America did not admit or deny any wrongdoing for the alleged books and records violations.

March 2 | Hudson United | $5 million

Mahwah, N.J.-based Hudson
United Bancorp
settled a New York district attorney's investigation regarding the company's failing to assess the international money-laundering risks at a branch operated by the bank at 90 Broad St. in Manhattan. The company, which did not acknowledge that it engaged in any criminal wrongdoing, agreed to a consent order for heightening its anti-money-laundering compliance and will pay the city of New York $3.5 million and the district attorney's office $1.5 million for the cost of the trial. The investigation centered on a business Hudson United bought from the Federal Deposit Insurance Corp. following the liquidation of Connecticut Bank of Commerce. Hudson operated the branch from June 2002 to November 2003.

Feb. 19 | MetLife | $1.5 million

In a settlement with NASD, State Street Research, the Boston-based asset management unit of
MetLife
, agreed to pay a $1 million fine and $500,000 in investor restitution for allegedly failing to properly supervise trading of its mutual funds. State Street Research neither admitted nor denied findings by NASD that the company permitted frequent mutual fund trading by customers of Prudential Securities (now Prudential Equity Group) from 2001 to August 2003.

Following several months of negotiations, the parent companies of the five largest specialists at the New York Stock Exchange revealed nearly $240 million in total fines and restitution related to alleged NYSE rule violations. In the agreements in principle, still being finalized by the SEC and NYSE, the companies claim they will neither admit nor deny findings that allege the specialists failed to maintain a fair or orderly market. In individual regulatory filings, Bear Wagner, a subsidiary unit of
Bear Stearns
, said it will pay $10.8 million in restitution and $5.5 million in penalties; the Spear, Leeds & Kellogg unit of
Goldman Sachs
will pay a total of $45.5 million; the Fleet Specialist unit of
FleetBoston Financial
will pay a total of $59.4 million; Van der Moolen Specialists, a unit of Van der Moolen, said it will pay between $51.8 million and $57.7 million; and
LaBranche
said its specialist unit will pay $41.6 million in restitution and $21.9 million in civil penalties.

Following a regulatory crackdown on mutual fund breakpoints, the sales load discounts mandated for large purchases, the SEC and NASD announced fines and settlements for 15 brokerage firms that failed to honor such price reductions. Seven companies, which missed at least $700,000 worth of discounts each in 2001 and 2002 combined, settled with both regulators. Eight other firms, whose oversight of the discounts was small in dollars but egregious by the percentage of breakpoints missed, settled only with NASD. In the settlements, the companies consented to penalties but neither admitted nor denied the findings. They also agreed to pay fines equal to the breakpoints missed. Wachovia Securities, a unit of
Wachovia
, paid a total of $9.7 million--consisting of $4.8 million in penalties and the same amount in restitution. UBS Financial Services, a unit of
UBS
, will pay a total of $9.2 million. The American Express Financial Advisors unit of
American Express
will pay $7.4 million.
Raymond James
and the Legg Mason Wood Walker unit of
Legg Mason
will pay $5.2 million and $4.6 million, respectively.

Feb. 5 | Sun Life Financial | $226 million

In a settlement with the SEC, the New Hampshire Bureau of Securities Regulation and the New York Attorney General's Office, Massachusetts Financial Services, the U.S.-based asset management unit of Canadian insurer
Sun Life Financial
, agreed to a $50 million penalty and $175 million of investor restitution related to allegations of improper mutual fund trading. In an agreement with New York, MFS agreed to lower its management fees by $125 million over the next five years. In an agreement with New Hampshire, MFS will contribute $1 million towards state and national investor education. The chief executive and chief investment officer of MFS received nine- and six-month bars, respectively, from the securities industry. Under the terms of the settlement, MFS and the executives neither admit nor deny wrongdoing.

Jan. 29 | Prudential Financial | $11.5 million

In a settlement with the NASD, Prudential Equity Group and Prudential Investment Management Services were fined $2 million and ordered to pay $9.5 million to customers for sales of annuities from November 1998 to mid-2002. According to NASD, Prudential employees circumvented certain New York State Insurance Department requirements when offering customers replacement annuities. The two units, part of
Prudential Financial
, neither admitted nor denied the charges.

Date | Company | Amount

Dec. 22 | CIBC | $80 million

In a settlement with the SEC,
Canadian Imperial Bank of Commerce
agreed to pay $80 million for allegedly helping
Enron
mislead investors by arranging 34 structured financings between June 1998 and October 2001. Without admitting or denying guilt, CIBC consented to the SEC's order and agreed to pay $37.5 million in disgorgement, $37.5 million in penalties and $5 million in prejudgment interest. The financings, according to the SEC, were loans disguised as "asset sales" for accounting and financial reporting purposes.

Dec. 18 | Alliance Capital Management | $250 million

In a settlement with the SEC,
Alliance Capital Management
agreed to pay $250 million for allegedly defrauding mutual fund investors by allowing market timing in certain mutual funds. Alliance Capital consented to the order without admitting or denying the findings. In addition to undertaking compliance and fund governance reforms, Alliance agreed to pay $100 million in penalties and $150 million in disgorgement. In a separate agreement with the New York Attorney General's office, Alliance agreed to cut its mutual fund fees by 20% for at least five years. (See "Mutual Funds' Worst Nightmare.")

Dec. 10 | Freddie Mac | $125 million

Mortgage buyer
Freddie Mac
agreed to a $125 million settlement related to the company's restatement of prior financial results (see "Fat Freddie Mac"). The fine was assessed by the Office of Federal Housing Enterprise Oversight. The company neither admitted nor denied any wrongdoing in agreeing to a consent order outlining several corrective actions at Freddie Mac. OFHEO also issued a nearly 200-page examination of events surrounding the restatement. Freddie Mac said it strongly disagreed with "characterizations, findings and conclusions in the report." (See "Shaking Steady Freddie.")

Nov. 17 | Morgan Stanley | $50 million

In a settlement with the SEC,
Morgan Stanley
agreed to pay a $25 million civil fine and $25 million in restitution for allegedly failing to disclose conflicts of interests related to mutual fund sales. In the complaint, the SEC claims that Morgan Stanley received payment from certain mutual fund families for promoting its funds. The company has now promised to fully disclose any such relationship. Morgan Stanley agreed to undertake corrective measures, without admitting or denying guilt. (See "Morgan Stanley's Red Velvet Line.")

Oct. 29 | Citigroup | $1 million

Citigroup
Global Markets paid a $1 million fine for failing to properly supervise activities in an Atlanta branch. The company neither admitted nor denied guilt but consented to the New York Stock Exchange findings in relation to conduct of certain registered representatives handling stock option transactions for employees of
WorldCom
.

Oct. 1 | J.P. Morgan Chase | $25 million

In a settlement with the SEC, the J.P. Morgan Securities unit of
J.P. Morgan Chase
agreed to pay $25 million to settle allegations of unlawful IPO-allocation practices. The settlement covers alleged improprieties that occurred between March 1999 and August 2000. The company consented to the fine without admitting or denying the allegations.

Sept. 29 | Bank of New York | $110 million

Bank of New York
agreed to pay $110 million to General Motors Acceptance Corp., the financing arm of
General Motors
. The settlement concerns the sale of
BNY Financial
to GMAC for $1.8 billion in cash in 1999 and the value of certain assets transferred to GMAC.

Sept. 16 | Morgan Stanley | $2 million

In a settlement with NASD,
Morgan Stanley
was fined $2 million and censured for conducting contests related to sales of Morgan Stanley's proprietary mutual funds and other financial products. In a press release, the NASD said Morgan Stanley ran sales contests offering non-cash prizes such as tickets for sporting events and concerts. The NASD also claims that a company regional manager sent e-mails to branch managers "to refrain from putting in writing details regarding contests." The company, and the head of its retail sales division, neither admitted nor denied the charges.

Sept. 11 | AIG | $10 million

Insurance giant
AIG
agreed to pay a $10 million penalty to the SEC in a settlement concerning fraud allegations at cell-phone retailer
Brightpoint
AIG allegedly helped facilitate fraudulent financial reports by selling Brightpoint an insurance product that allowed the company to spread a December 1998 loss over several quarters. AIG neither admitted nor denied guilt.

Sept. 4 | Goldman Sachs | $9.3 million

In a settlement with the SEC, Goldman Sachs & Co., a unit of
Goldman Sachs Group
, agreed to pay $4.3 million in restitution and a $5 million penalty related to improper trading in U.S. Treasury securities and futures. Without admitting or denying the findings, Goldman consented to the SEC's order. The restitution and penalty relate to improper trading in 30-year bonds on Oct. 31, 2001, that the SEC alleges was caused by embargoed information received by then senior economist John Youngdahl. The SEC has filed a civil complaint against Youngdahl and Peter Davis, a Washington, D.C.-based consultant, who allegedly supplied Youngdahl with a tip that the U.S. Treasury was about to announce the suspension of the 30-year bond. Youngdahl has also been charged with seven counts of criminal activity by the U.S. attorney for the Southern District of New York. Davis, also charged by the U.S. attorney, has already pleaded guilty. A lawyer for Youngdahl says that his client intends to fight the charges. (See "Goldman Scuffs Its Shoes.")

Aug. 14 | SG Cowen, Lehman Brothers | $7.5 million

In a settlement with the SEC and the New York Stock Exchange, SG Cowen Securities, a unit of Société Générale Group, and
Lehman Brothers
will pay penalties of $5 million and $2.5 million, respectively, for allegedly failing to supervise rogue stock broker Frank Gruttadauria during his tenure at the two firms. The penalties will be split by the NYSE and SEC. SG Cowen and Lehman consented to the findings that they violated securities law, with neither admitting nor denying the findings themselves. During his tenure at both firms, the regulators allege that Gruttadauria misappropriated $115 million in customer holdings and stole $68.5 million from the accounts. Gruttadauria, based in Cleveland, did this by fabricating client reports. He surrendered to authorities in February 2002 and is serving a seven-year jail term. The SEC's and NYSE's investigations are continuing.

July 28 | Citigroup, J.P. Morgan Chase | $305 million

In a settlement with the U.S. Securities and Exchange Commission and the Manhattan district attorney,
Citigroup
agreed to pay $101 million for
Enron
-related allegations of misconduct and $19 million for dealings with
Dynegy
.
J.P. Morgan Chase
agreed to a penalty of $135 million for Enron-related allegations. The companies also paid $12.5 million each to both New York State and New York City. Both institutions consented to cease and desist from further violations, but neither admitted nor denied the findings. In written agreements with the Federal Reserve, Citigroup and J.P. Morgan Chase said they would adhere to tighter risk management for structured transactions. Both companies came under fire for setting up structures allowing Enron to mitigate commodity price ri

June 2 | PNC Financial Services Group | $115 million

In a deferred prosecution agreement with the Justice Department and the Corporate Fraud Task Force, PNC ICLC, a non-bank subsidiary of
PNC Financial Services Group
, paid $115 million related to the transfer of troubled loans and investments from PNC ICLC to unconsolidated special-purpose entities. The agreement called for PNC ICLC to pay a $25 million penalty and $90 million to a restitution fund. An investigation is ongoing into the unit's transfer of $762 million in assets to three off-balance-sheet units known collectively as the PAGIC entities. PNC ICLC can avoid prosecution on the issue by complying with a set of obligations in the agreement.

April 30 | Visa USA and MasterCard International | $3 billion

From a 7-year-old lawsuit brought by
Wal-Mart Stores
,
Safeway
, various other retailers and retail associations, VISA USA and MasterCard International have reached a settlement-in-principle to pay $2 billion and $1 billion, respectively, over claims that the card associations forced retailers to accept signature-based debit card transactions on their own networks. Such transactions carry higher fees than PIN-based debit transactions. The card associations, whose largest members include banks and financial services firms such as
Citigroup
,
J.P. Morgan Chase
and
Bank of America
, agreed to pay $25 million upfront, but other funding sources haven't been disclosed. The schedule of payments has not yet been revealed.

March 20 | Merrill Lynch | $6 million

Merrill Lynch
agreed to settle a 1996 case brought by investors in three mortgage-backed securities funds run by Askin Capital Management. In 1994, as interest rates rose, the funds collapsed while holding $600 million face-value in collateralized mortgage obligations and incurred margin calls by broker-dealers

Feb. 20 | J.P. Morgan Chase | $6 million

J.P. Morgan Securities, a unit of
J.P. Morgan Chase
, was fined by the NASD for profit sharing and tie-in trades related to initial public offerings managed by Hambrecht & Quist between November 1999 and March 2000. The company neither admitted nor denied the allegations, but consented to the entry of findings.

Feb. 20 | Merrill Lynch | $80 million

Merrill Lynch
announced a settlement in principal with the SEC concerning Enron-related transactions from 1999. The brokerage house neither admitted nor denied the allegations, but consented to an injunction enjoining the firm from further violations.

Jan. 9 | FleetBoston Financial | $33 million

FleetBoston Financial
agreed to pay $14 million to the NASD and $19 million to the SEC to settle charges of improper profit sharing related to initial public offerings during 1999 and 2000 at its since shuttered investment bank Roberston Stephens. The company neither admitted nor denied the allegations, but consented to the entry of findings.

Date | Company | Amount

Dec. 31 | Bank One | $1.3 million

The First USA unit of
Bank One
settled an investigation with 28 states and Puerto Rico concerning the company's telemarketing practices. Bank One, the largest issuer of Visa cards, agreed to reform its relationship with third-party vendors who solicit the bank's credit-card holders.

Dec. 30 | U.S. Bancorp | $32.5 million

Following the Dec. 20 settlement-in-principle by ten major investment banks, the Piper Jaffray unit of
U.S. Bancorp
settled with state and national securities regulators.

Following a $100 million fine for
Merrill Lynch
, national and state securities regulators announced settlement terms and figures for the year long investigation into Wall St. business practices. The agreement includes fines for relief, funds for independent research, and monies for investor education. Salomon Smith Barney, a unit of
Citigroup
, will pay $400 million. Credit Suisse First Boston, a unit of
Credit Suisse Group
, will pay $200 million. Other firms will pay between $80 million and $125 million. Fines expected for U.S. Bancorp Piper Jaffray and Thomas Weisel were not announced. The agreement must be finalized by the U.S. Securities and Exchange Commission.

Goldman Sachs
,
Morgan Stanley
, the Salomon Smith Barney unit of
Citigroup
, the Deutsche Bank Securities unit of
Deutsche Bank
and the U.S. Bancorp Piper Jaffray unit of
U.S. Bancorp
each agreed to pay $1.65 million in fines for allegedly violating e-mail record-keeping requirements. The fines were assessed to each company by the SEC, the New York Stock Exchange and the NASD. In accepting the penalties, the broker-dealers neither admit nor deny the allegations.

Oct. 11 | Household International | $484 Million

In the largest-ever predatory lending settlement,
Household International
's
HFC/Beneficial non-prime lending unit acquiesced to a consortium of state regulators. Household is providing the money to resolve borrower complaints of excessive penalties and fees.

Oct. 2 | Bank Of America | $490 Million

A Missouri federal judge approved a class action settlement to send $333 million to former NationsBank shareholders and $157 million to former BankAmerica shareholders. The dispute arose over misrepresented financial statements when the two companies merged to become
Bank of America
. The plaintiff's lawyers are also seeking more than $100 million.

Sept. 23 | Citigroup | $5 Million

Sept. 19 | Citigroup | $215 Million

The FTC settled predatory lending claims against
Citigroup
's Associates First Capital unit. Contingent upon approval by federal district court in Atlanta and a similar class action case in California, the settlement could provide up to $240 million in redress for sub-prime borrowers.

Sept. 5 | Deutsche Bank | $58 Million

Former shareholders of Bankers Trust reached a settlement in New York federal court with
Deutsche Bank
. The plaintiffs alleged that Deutsche Bank's chairman denied his firm was in discussion to buy Bankers Trust in order to drive the stock price down before officially announcing the acquisition.

July 26 | FINOVA Group | $47.5 Million

An Arizona federal judge approved a class action settlement exacting payment for allegedly misleading financial statements from the once bankrupt lender.
FINOVA Group
, bailed out last year by
Berkshire Hathaway
and
Leucadia National
, is in the process of shutting down.

June 17 | American Express | $31 Million

The American Express Financial Advisors unit of
American Express
agreed to settle a class action suit brought by 16 female employees who claimed they were discriminated against in hiring, assignments and promotions. The class, approved by a Washington, D.C., federal judge, consists of almost 4,000 current and former advisors.

May 30 | The Metris Companies | $5.6 Million

The Metris Direct and Direct Merchants Bank unit of
Metris Companies
settled three separate lawsuits, consolidated in Hennepin County, Minn. Customers of the direct credit card marketer claimed they were assessed unauthorized fees and charges.

May 21 | Merrill Lynch | $100 Million

The largest U.S. brokerage house paid the penalty for publishing misleading research. As part of the agreement with the New York attorney general and other state securities regulators,
Merrill Lynch
agreed to increase research disclosure and work to decouple research from investment banking.

March 27 | Providian Financial | $38 Million

In a Pennsylvania federal court,
Providian Financial
agreed to settle a class action suit regarding allegations of false and misleading statements by executives in the beginning of 1999.

Jan. 17 | Credit Suisse Group | $100 Million

Credit Suisse First Boston, the investment bank for
Credit Suisse Group
, settled stock spinning allegations with the U.S. Securities and Exchange Commission and NASD. The regulators alleged that CSFB was charging extraordinary commissions on stock trades linked to allocations for initial public offerings.

Jan. 7 | Knight Trading Group | $1.5 Million

Knight Trading Group
's
Knight Securities unit, the largest market maker of Nasdaq stocks, agreed to pay $700,000 in fines and $800,000 in client restitution. The fines, levied by NASD Regulation, cover various trading violations over four years. The restitution settlement covered one instance of mishandled trading.

Date | Company | Amount

Dec. 7 | American Express | $15 Million

A Minnesota federal judge approved a settlement brought by a class against the American Express Financial Advisors unit of American Express seeking restitution for taxes and benefits. Certain advisors were misclassified as independent contractors but served as full-time employees.

Nov. 7 | Providian Financial | $105 Million

In a Pennsylvania federal court, Providian National Bank, the lending arm of Providian Financial, and other Providian subsidiaries settled class actions claims concerning unfair business practices. Consumers raised complaints about fees, credit line increases, and unauthorized add-ons to their credit cards. In 2000, Providian settled a similar complaint with the Office of the Comptroller of the Currency for $300 million.

Oct. 12 | Bank of Bermuda | $65 Million

A Florida federal judge approved an SEC-determined class action settlement for Ponzi scheme allegations. The commission alleged that
Bank of Bermuda
raised more than $300 million dollars through Cash 4 Titles. The money was supposed to go to the bank's title and pay day lending business, but instead went to pay other expenses.

July 13 | Charles Schwab | $10 Million

U.S. Trust, owned by
Charles Schwab
, agreed to pay $5 million to both the Federal Reserve Board and the New York State Banking Department to settle alleged violations of the Bank Secrecy Act, which contains safeguards to prevent money laundering and fraud.

June 11 | Donaldson, Lufkin and Jenrette | $30.4 million

DLJ, now a unit of
Credit Suisse First Boston
, agreed to settle a 1996 case brought by investors in three mortgage-backed securities funds run by Askin Capital Management. In 1994, as interest rates rose, the funds collapsed while holding $600 million face-value in collateralized mortgage obligations and incurred margin calls by broker-dealers.

June 1 | Bank One | $45 Million

In an Illinois federal court,
Bank One
agreed to settle a class action suit alleging false and misleading statements by Bank One executives concerning its First USA credit card business.

May 30 | Mellon Financial | $20.5 Million

In an agreement with state and federal courts,
Mellon Financial
's
Dreyfus asset management unit agreed to settlement and restitution over front-running claims. Plaintiffs alleged that the company was complicit in concealing illegal actions by a Dreyfus fund manager from 1995 to 1998.

April 5 | Bank One | $1.8 Million

Feb. 2 | Bank One | $40 Million

In an Illinois federal court, Bank One's First USA Bank settled class action claims brought by credit-card customers. The complaint sought restitution for late fees and other charges related to delays brought about by First USA's payment processor.

Sources: NASD, SEC, FTC, OCC, company and state and federal court documents. Additional information from ClassActionAmerica.com and the Stanford Securities Class Action Clearinghouse.